|
Consumers in the UK may file claims against his or her payment protection insurance (PPI), which shields largely mortgage providers, banks and credit card companies from loan defaults. Wronged policyholders can recoup some or all of their premiums for free by confering directly with loan providers or getting help from the Financial Service Authority, the industry regulatory agency, or the Financial Omsbudsman Service, which Parliament set up to help consumers and businesses work out disputes. Instead, policyholders routinely turn to claims companies for help and pay a fee, according to Tony Boorman, FOS principal ombudsman and decision director. One reason, says Boorman, is that policyholders don't always trust the bank or credit card company that prompted their claim. They might also feel that winning a claim is more likely if they pay the claims handler. The growing number of claims handlers in the UK - who range from high-end lawyers and large claims-management companies to one-person operators - might complicate consumers' ability to choose a credible agent. But understanding PPI regulations and knowing how reputable claims handlers function can narrow and simplify the search. PPI violations that foster claims Policyholders who didn't know they had PPI coverage or don't remember buying a policy were "mis-sold" PPI and can file a claim for premium reimbursement. These "phantom" sales often stem from the lender practice of rolling PPI policies into loan agreements. In a claims dispute, however, it's the policy seller who must prove that the policyholder knew about the sale. Lenders may require borrowers to have PPI coverage, but banking codes prevent lenders from requiring borrowers to buy only the policies they offer. Consumers may also file claims when lenders… Intentionally sell policies they know can't generate claims. Sell PPI coverge to customers who are older than their policy's age limit. Fail to explain PPI coverge in full, including total costs, cancelation terms and exclusions for some health conditions. Fail to make borrowers aware of alternative payment-protection coverage, such as income-protection insurance. Offer a refund amounting to a small fraction of the premiums paid. Fail to reveal that most PPI policies last only five years, which could be shorter than the loan's term. Consumers who knowingly purchase policies while not employed are not eligible to file a claim. "Not employed" includes unemployment, retirement and self-employment. Claims handlers to avoid Credible claims handlers are trustworthy and transparent. Therefore, consumers should avoid those who… Charge upfront fees, which leaves claims companies with little incentive to seek a win for their clients. Don't or won't reveal all their fees. Consumers should ask outright what fees or charges they can expect to pay after the settlement or if the claim is denied. Don't reveal their established take of the total settlement payment. Consumers should insist that claims companies specify their percentage of the winnings. Claims handlers also are expected to be highly skilled and compliant with industry regulations. Consumers should ask what kind of training agents undergo and whether they're regulated by the Ministry of Justice, as required. And finally, credible claims handlers willingly share their success rates in winning claims and provide references from previous clients.
|
![[Valid RSS feed]](http://www.megaezines.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed